Murray-Darling Basin Authority wins negligence class action case

The NSW Supreme Court has dismissed a $750 million class action lawsuit brought by approximately 28,000 irrigators against the Murray-Darling Basin Authority (MDBA). The plaintiffs alleged that the authority was negligent in its duty of care during the 2017-18 water year, causing significant economic loss due to the mishandling of water releases.

The case centered on overbank transfers near the Yarrawonga Weir, where it was estimated that up to 140 gigalitres of water were lost to the Barmah-Millewa Forest. The irrigators argued that the timing of these transfers, intended to meet downstream entitlements, resulted in them receiving only a fraction of their water entitlements, thereby impacting their business profitability.

In his judgment, Justice Tim Faulkner ruled that the MDBA has a legal obligation to act in the public interest rather than for the benefit of private individuals. He noted that imposing a duty of care to specific irrigators could distort the authority’s independent role in managing water sharing between states. The court also ordered the plaintiffs to pay the defendant's costs.